Defense technology startup Shield AI valued at $12.7 billion in latest funding round

Reuters

Thu, March 26, 2026 astatine 8:45 AM CDT 1 min read

March 26 (Reuters) - Shield AI is raising $2 cardinal successful a caller backing circular astatine a $12.7 cardinal valuation, arsenic the ‌defense exertion startup looks to grow its artificial intelligence-powered bundle ‌amid increasing usage of autonomous tools during conflicts.

The startup said connected Thursday the Series ​G circular was led by Advent International and co-led by JPMorganChase's Strategic Investment Group, with information from existing investors including Snowpoint Ventures and Riot Ventures.

Shield AI said Blackstone-managed funds are investing $500 cardinal successful preferred ‌equity arsenic portion of ⁠the financing, portion besides committing an further $250 cardinal delayed gully installation that could bring its full concern to $750 ⁠million.

The usage of autonomous technologies successful the U.S. and Israel's coordinated strikes against Iran and Russia's penetration of Ukraine has boosted request for ​tools made ​by companies that specialize successful autonomous ​flight software.

Shield AI's Hivemind bundle ‌allows drones and craft to run successful GPS-denied environments and has been tested connected respective platforms, including the F-16 combatant jets and the U.S. Air Force's uncrewed limb strategy called Collaborative Combat Aircraft.

Shield AI plans to usage a information of the funds to bargain ‌simulation bundle shaper Aechelon Technology from backstage ​equity steadfast Sagewind Capital, it said, ​without disclosing fiscal presumption of ​the deal.

"The acquisition of Aechelon volition accelerate the ‌work we are doing with Hivemind, ​particularly successful simulation ​like the Department of War's JSE (Joint Simulation Environment)," Shield AI CEO Gary Steele said successful a statement.

The JSE is simply a high-fidelity ​virtual combat scope ‌used by the U.S. subject to trial aircraft, autonomous systems ​and tactics against realistic battlefield threats.

(Reporting by Jaspreet Singh ​in Bengaluru; Editing by Devika Syamnath)